Strategy Inc. Announces Successful Series A Preferred Stock Offering
Strategy Inc., led by billionaire Michael Saylor, revealed on Friday that it has successfully priced its Series A Perpetual Stream Preferred Stock (STRE) offering at a substantial €620 million (approximately $715 million). This total was significantly increased from an initial target of €350 million, following an overwhelming response from investors. The offering, which includes 7.75 million shares priced at €80 each, is expected to close on November 13, 2025, pending the usual regulatory approvals.
Use of Capital and Corporate Strategy
The capital raised will primarily support Strategy’s general corporate needs, notably the purchase of additional bitcoin, which remains a cornerstone of the company’s treasury management strategy. As one of the most significant corporate holders of bitcoin, Strategy has been actively developing investment products that capitalize on digital assets, effectively blending technology with finance.
Dividend Structure and Investor Protections
Each share of the newly issued STRE stock boasts a 10% annual dividend, translating to €10 for every €100 in value. Dividend payments will occur quarterly on March 31, June 30, September 30, and December 31, beginning at the end of 2025. To manage potential challenges in cash flow, unpaid dividends will accrue interest quarterly, increasing by 1% each period, capping at 18%. This design offers investors a consistent and lucrative return, while providing the company necessary flexibility.
Investors are further protected through redemption rights, allowing them to demand buybacks at €100 per share, plus any unpaid dividends, in the event of significant changes to the company’s structure, such as mergers or ownership alterations. Additionally, if the company were to undergo liquidation, the STRE shares would have a preference value of €100, ensuring these investors are prioritized over common shareholders.
Underwriting and Institutional Interest
The underwriting process is being managed by a consortium of prestigious financial institutions, including Barclays, Morgan Stanley, and Société Générale, highlighting strong institutional interest in Strategy Inc. and its innovative approach that fuses conventional finance with the emerging digital asset landscape. This latest initiative by Strategy reinforces its position as both a pioneer in corporate finance tied to bitcoin and a forward-thinking financial entity.
